Old Second Bancorp Reports Q3 2026 Earnings with Improved Net Interest Margin and Dividend Increase
Old Second Bancorp (OSBC) reported third-quarter earnings of $0.56 per diluted share on net income of $28.9 million, driven by a strong tax-equivalent net interest margin of 5.27%. Despite facing $12.7 million in loan charge-offs—largely due to a single commercial relationship and powersport loans—the company saw significant improvements in credit quality, with classified loans dropping to their lowest levels since before the COVID-19 pandemic. The bank demonstrated disciplined capital management by repurchasing 1.5 million shares and announcing a 14% increase in its common dividend to $0.08 per share. While deposit costs rose slightly to 1.02%, the company successfully reduced high-cost brokered deposits. Looking ahead, management anticipates slight net interest margin compression in Q4 due to competition but remains optimistic about loan growth through middle-market and small business pipelines.
Tickers: $OSBC
Topics: Dividend Increase Loan Charge-offs Net Income Net Interest Margin Share Repurchases